Oct 25, 2012 --- Individuals are more likely to implement a financial change
when there is an explicit investment recommendation versus general guidance. ---
A TIAA-CREF survey found that Americans need individualized
advice, with one in five saying finding relevant financial advice is difficult.
Of those, 51% said they do not know where to start looking, and 74% said they
do not know which sources they can trust for financial advice.
The survey also found that the desire to seek advice and
take action differs based on age, gender and other individualized factors.
Respondents ages 18 to 34, or Gen Y, showed more interest in
getting financial advice than any other age group surveyed. Four in 10 said
they frequently look for financial advice. Gen Y also was more likely to report
making changes after receiving advice, and nearly 60% said they are likely to
use online tools to do so.
Women respondents were more likely than men to face
challenges finding financial advice, the study found. Nearly half of women
surveyed believe personalized, objective advice will cost more than they can
afford, and more than one-third said they do not have the time to look for it.
However, women were more likely than me to take action on advice received, with
nearly 90% reporting they do at least some of the time.
According to the results, Baby Boomers were the most likely
to report financial advice was very difficult to find. Furthermore, only one in
three Boomers admitted they consistently act on the advice they receive.
“The fact that people are not consistently acting on the
advice they receive come as no great surprise,” said James Nichols, senior
managing director, advice and planning services at TIAA-CREF. “People are all
too often inundated with information telling them to save more, cut costs and
plan for retirement, but how you go about that differs for every person.”
The survey was conducted by KRC Research by phone among a
national random sample of 1,006 adults ages 18 years and older nationwide
between July 11 and July 17. For more information, click here.